Article by: ETO Markets
Gold (XAU/USD) spikes to a four-day high around $…-… as geopolitical tensions, trade war fears, and expectations of Federal Reserve rate cuts boost demand for safe-haven assets. The US Dollar struggles near a two-week low due to these factors, although the US PCE data shows stalled inflation, suggesting the Fed may slow its rate cuts, which could support the USD and cap gold's gains. Meanwhile, Russian President Putin threatens to use hypersonic missiles against Ukraine, and US President-elect Trump’s tariff plans on Canada, Mexico, and China raise concerns of trade wars. The Fed is divided on further rate cuts, and the 10-year US Treasury yield hits a two-week low amid hopes of controlling US deficits. With no major economic data expected on Friday and early closures for the Thanksgiving holiday, market uncertainty persists.
From a technical perspective, an intraday breakout above the $…-… zone, which combines the 55-day Simple Moving Average (SMA) and the 38.2% Fibonacci retracement, acted as a key bullish trigger. However, the price stalls near the $…-… region, where the 50% Fibonacci level serves as a pivotal point. If buying momentum continues, gold could rise to the $… area (61.8% Fibonacci level) and approach the $… mark. On the downside, the $… resistance now acts as key support. A drop below this level could bring gold back to the $… area (23.6% Fibonacci level) and further to the $… region. Additional selling below $… could lead to deeper losses towards the 100-day SMA around $2,573, possibly reaching the monthly low near $…-….
